Norway’s energy giant Equinor has secured a project financing package of over $3bn for its Empire Wind 1 project in the US.
The project, which reached financial close at the end of December 2024, will power 500,000 New York homes and is expected to reach its commercial operation date in 2027.
The company explained that the project was able to secure competitive terms due to strong interest from lenders.
“The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks,” it noted.
Equinor acquired the Empire Wind lease area in 2017. It is being developed in two phases, Empire Wind 1, with a contracted capacity of 810 MW, and Empire Wind 2, with a potential capacity of more than 1,200 MW.
The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are approximately $5bn, including the effect of expected future tax credits.
Located 15-30 miles southeast of Long Island and spanning 80,000 acres, Empire Wind 1 will be the first offshore wind project to connect into the New York City grid.
In June last year, Equinor announced the execution of the Purchase and Sale Agreement with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of $155.00/MWh.
Equinor said it intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.
“Today’s financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain,” said Molly Morris, senior vice president for Renewables in Americas. “Our redevelopment of the South Brooklyn Marine Terminal is already putting more than 1,000 people to work.”
Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project earlier this year. Construction has already begun.
“This is an important milestone for Equinor, in line with our plan to enhance value and reduce exposure in the Empire Wind 1 project. As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project,” added Jens Økland, acting executive vice president for Renewables in Equinor.
